ROBERT L. EHRLICH, JR., Governor

H.B. 240

certain term; providing for the application of this Act; and generally relating to
altering certain procedures, valuations, and payments concerning an elective
share of a surviving spouse.

BY repealing and reenacting, with amendments,
Article - Estates and Trusts
Section 3-203, 3-206(a), and 3-208(b)(2)
Annotated Code of Maryland
(2001 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Estates and Trusts

3-203.

(A) IN THIS SECTION, "NET ESTATE" MEANS THE PROPERTY OF THE
DECEDENT PASSING BY TESTATE SUCCESSION, WITHOUT A DEDUCTION FOR STATE
OR FEDERAL ESTATE OR INHERITANCE TAXES, AND REDUCED BY:

(1)      FUNERAL AND ADMINISTRATION EXPENSES;

(2)      FAMILY ALLOWANCES; AND

(3)      ENFORCEABLE CLAIMS AND DEBTS AGAINST THE ESTATE.

[(a)] (B) Instead of property left to [him] THE SURVIVING SPOUSE by will, the
surviving spouse may elect to take a one-third share of the net estate if there is also
a surviving issue, or a one—half share of the net estate if there is no surviving issue.

[(b)] (C) The surviving spouse who makes this election may not take more
than a one-half share of the net estate.

[(c) For the purposes of this section, the net estate shall be calculated without
a deduction for the tax as defined in § 7-308 of the Tax - General Article.]

(D)     FOR THE PURPOSES OF THIS SECTION, THE NET ESTATE AND THE
PROPERTY ALLOCABLE TO A SHARE OF A SURVIVING SPOUSE SHALL BE VALUED AS
OF THE DATE OR DATES OF DISTRIBUTION.

(E)     (1) FOR THE PURPOSES OF THIS SECTION, A SURVIVING SPOUSE WHO
HAS ELECTED TO TAKE AGAINST A WILL SHALL BE ENTITLED TO THE SURVIVING
SPOUSE'S PORTION OF THE INCOME EARNED ON THE NET ESTATE DURING THE
PERIOD OF ADMINISTRATION BASED ON A ONE-THIRD OR ONE-HALF SHARE,
WHICHEVER IS APPLICABLE.

(2) IF ONE OR MORE DISTRIBUTIONS HAVE BEEN MADE TO A SURVIVING
SPOUSE OR ANOTHER PERSON THAT REQUIRE AN ADJUSTMENT IN THE RELATIVE
INTERESTS OF THE BENEFICIARIES, THE APPLICABLE SHARE SHALL BE ADJUSTED.

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